Astute Analytica reports Direct-to-Consumer (D2C) coffee market to rise to $2.72 billion by 2027
Astute Analytica reports Direct-to-Consumer (D2C) coffee market to rise to $2.72 billion by 2027
September 9 - 2021 Coffee Geography Magazine

Reported by Astute Analytica, the D2C coffee market is estimated to rise to 15.3% during the period 2020-2027, globally. The market is analyzed to see addition of more than USD 1.56 Bn of opportunity over this forecast term, with volume sales crossing 139.0 kilotons by 2027.

Direct-to-consumer coffee (D2C or DTC) is roasted, ready-to-serve coffee that can be found at coffee shops, retailers, and shopping malls. DTC coffee is available to anyone who wants to make an instant coffee drink. Pouches, jars, ready-to-drink coffee, and various varieties of direct-to-consumer coffee are available. The demand for unconventional and premium products has risen in recent years, and a dozen or more coffee startups/direct-to-consumer (D2C) businesses are catering to the changing customer taste and expectations. A surge in disposable income and a shift in lifestyle has undoubtedly shifted the global demography towards delightful meals and beverages.

direct to consumer

The research study analyzes the impact of some of the major market drivers such as the rising demand of certified and organic products. Consumers have been increasingly aware of the manufacture of the things they buy in recent years, as well as the origins of their purchases. This is especially true in the case of food and beverage supply chains, including coffee. As a result, people are eager to purchase certified coffee goods to assure the quality of the product. Because coffee is becoming an increasingly popular target for food counterfeiters, certified coffee provides consumers with assurances about the product's reliability. Certifications provide consumers with a variety of third-party assurances. They can provide verification for environmentally responsible farming techniques, up to and including organic certification. Fair Trade is one such certification that strives to improve the lives of farmers in underdeveloped countries by guaranteeing a minimum price, connecting them directly with importers, and ensuring long-term environmental stewardship and sustainability. It's a product certification method that verifies the social, economic, and environmental elements of production against Fairtrade Producer and Trader Standards. The Fairtrade system keeps track of the product's purchase and sale until it's packaged and labelled for consumers. Since 2000, Starbucks has offered Fairtrade coffee. Fair trade coffee is coffee that has been recognized by fair trade organizations as having been produced according to fair trade standards. Fair trade organizations form trading partnerships based on discussion, transparency, and respect with the purpose of attaining more equity in international trade. Starbucks sold 34.3 million pounds of Fairtrade coffee in 2011, accounting for 8% of total sales. Also, the firm purchased 9.6 million pounds (2.2%) of certified organic coffee in the same year. However, growing number of health-conscious consumers, as well as the negative health impacts associated with excessive caffeine consumption, are likely to hinder coffee's growth and sales.

The way consumers buy is changing due to a slew of new direct-to-consumer enterprises. In the process, these businesses are profoundly shifting consumer tastes and expectations. Direct-to-consumer companies have taken advantage of this infrastructure to expand swiftly and communicate directly with their customers. Direct-to-consumer (D2C) businesses manufacture and deliver their products directly to clients, skipping intermediaries. Unlike their traditional retail competitors, D2C businesses can experiment with distribution methods like shipping directly to customers, developing partnerships with physical locations, and opening pop-up shops. There's a reason why the D2C method is more effective. When a brand's identity is strong and consistent, consumers are united behind a single message. The most extensively consumed brewed beverage is coffee, which is manufactured from roasted coffee beans, which are the seeds of Coffee species.

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